Integrating Innovation and Environmental Strategy: Sustainability Drivers and Organisational Performance in Vietnam's Logistics Sector

ABSTRACT This study examines how sustainability drivers—technological innovation, sustainable supply chain management (SSCM) and corporate social responsibility (CSR)—influence environmental and organisational performance in Vietnam's logistics industry. Drawing on the natural resource–based view, institutional theory and stakeholder theory, survey data from 322 logistics professionals in Vietnam were analysed using structural equation modelling (SEM) in Stata. The results show that technological innovation has a strong positive effect on environmental performance ( β = 0.788, p < 0.001), while SSCM positively influences organisational performance ( β = 0.116, p < 0.05). CSR significantly enhances environmental performance ( β = 0.215, p < 0.01) but demonstrates a negative association with organisational performance ( β = −0.117, p < 0.05), indicating short‐term cost pressures associated with CSR investments. In contrast, environmental performance does not exert a significant effect on organisational performance, and technological innovation does not significantly predict SSCM adoption, reflecting coordination gaps, institutional constraints and uneven sustainability integration within Vietnam's logistics sector. The findings suggest that logistics firms should strategically integrate digital technologies with sustainability‐oriented supply chain practices rather than adopting technological innovations in isolation. For policymakers, the results highlight the need for stronger regulatory enforcement, targeted incentives for green technologies and mechanisms that promote interfirm collaboration to translate sustainability investments into long‐term competitive advantages in emerging logistics markets such as Vietnam.